Community Header Banner

Search

Seller debt

The loan request is to refinance seller debt of $280,000 and another note
financed by an individual in the amount of $100,000. The loan amount is
$375,000, whihc leaves the sellers carrying debt of $50,000. The owner bought
the business January 1, 2013. The borrower is a CPA and has been in business
for 3 years with a specialty in employee benefits, whihc is the same thing
the company that he purchased does. Can this loan be considered for a 7a
since it has only been 14 months since the acquisition?

HorizonBusinessFunding | Window Shopper |
3/13/2014 - 3:05 pm

This question might be better posed to the specific bank you were looking to
borrow from. It may be the case that different banks looking at this will
have different requirements, therefore your answer might differ, but I defer
to anyone with more experience in this type of situation.